• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
CommentaryLegal

Legal AI is splitting in two—and most people miss the difference

Nick Lichtenberg
By
Nick Lichtenberg
Nick Lichtenberg
Business Editor
Down Arrow Button Icon
Nick Lichtenberg
By
Nick Lichtenberg
Nick Lichtenberg
Business Editor
Down Arrow Button Icon
March 4, 2026, 4:00 AM ET
David Wong is Chief Product Officer at Thomson Reuters.
wong
David Wong, chief product officer of Thomson Reuters.courtesy of Thomson Reuters

Last week, Thomson Reuters announced that CoCounsel had reached one million users across 107 countries and territories. At the same time, Anthropic unveiled an expanded suite of enterprise plugins for Claude, including specialized tools for legal, finance, and HR work.

Recommended Video

These announcements, coming within hours of each other, crystallized what’s really happening in legal AI—and why a Wikipedia screenshot from weeks ago matters more than ever.

A few weeks back, a post from a founder on X made the rounds on LinkedIn. A general counsel had tested Anthropic’s Claude for contract review, and the AI had pulled information from Wikipedia.

Cue the hot takes. AI skeptics declared victory: foundation models aren’t ready for legal work. AI bulls shrugged it off as growing pains. Both sides missed what that screenshot actually revealed about where this market is heading.

I’ve spent years building AI for lawyers at Thomson Reuters. That Wikipedia moment wasn’t an AI failure. It was a systems failure. Understanding the difference determines who wins the next decade of legal tech—and this week’s announcements show that battle is intensifying.

The Missing Context

When that GC tested Claude, the system did exactly what it was designed to do: pull from available sources. No legal research database, no authoritative content, no firm precedents. Just the open web, which includes Wikipedia.

Most reactions split into predictable camps. One said foundation models can’t handle legal work. The other said models will improve. Both miss the real issue.

Claude and ChatGPT are remarkably capable. The problem isn’t intelligence, but whether the surrounding system is designed for the task at hand, combining authoritative sources, expert oversight, and practical safeguards.

This is an architecture problem.

The Anthropic Moment

Anthropic’s announcement makes this divide concrete. The company launched department-specific plugins, including one for legal work that can review documents, flag risks, triage NDAs, and track compliance. Companies can now connect Claude Cowork to Google Drive, Gmail, DocuSign, and other enterprise systems.

This is exactly the kind of move that rattled software stocks in February—our shares at Thomson Reuters fell more than 30% in the initial selloff. But when we announced CoCounsel’s one million users, our stock jumped 11% in its biggest single-day gain since 2009.

The market is starting to understand something important: there’s a fundamental difference between AI that can automate workflows and AI that can handle authoritative legal work.

The Real Divide in Legal AI

A lot of confusion in today’s legal AI debate comes from treating all legal work as the same when it isn’t. Legal work can be broadly divided into two categories: work that requires authority and work that doesn’t.

There is a large and valuable category of legal work that does not require authoritative legal sources. Lawyers and legal teams routinely use software to standardize formatting, compare contracts against internal playbooks, manage billing and timesheets, or automate internal workflows. None of that requires case law, statutes, or regulatory validation.

This is where products like Cowork, Harvey, and Legora largely operate today.

Why Cowork’s Legal Plugin Changes the Game

Anthropic’s legal plugin deserves special attention because it attacks the non-authoritative layer of legal work extremely well. By focusing on internal documents, workflows, and operational efficiency, it competes directly with most of the core use cases for the vertical startups. 

With enterprise connectors to existing systems and the ability for companies to build custom plugins, Cowork is positioning itself as the operating system for legal operations work. That’s a direct threat to vertical legal AI startups.

But—and this is crucial—that does not make Cowork a substitute for systems designed to handle authoritative legal work. And conflating those categories obscures what’s really happening in the market.

Where Authority Actually Matters

Where things change is when legal work requires authority:

• Researching an unresolved legal issue
• Developing novel arguments
• Validating an agreement against statutes or regulations
• Producing work that must be cited, audited, and defended

These tasks require authoritative content and systems designed to manage risk, accountability, and trust.

This is where Thomson Reuters plays with CoCounsel.

When we built CoCounsel, we didn’t wrap a foundation model in a user interface. We integrated Westlaw’s database, containing millions of court decisions, statutes, and regulations curated over decades by legal experts. We connected Practical Law, with thousands of attorney-drafted practice notes and documents.

That content took decades and billions of dollars to build. It cannot be recreated through fine-tuning alone.

What the Wikipedia Screenshot Really Shows

The Wikipedia incident highlights what happens when AI without authoritative infrastructure is used for tasks that require it. You get hallucinations and errors, and most importantly, you lose trust.

This isn’t unique to Claude. Any system asked to perform authoritative legal work without authoritative sources will fail in similar ways—even with the most sophisticated plugins.

Why Organizing the Law Is So Hard

The law is messy. It’s fragmented across jurisdictions and much of it isn’t fully digital. It changes constantly.

At Thomson Reuters, we’ve built AI systems, data pipelines, and editorial workflows, and we employ thousands of legal experts to organize the law into a searchable, continuously updated system for both humans and machines. Many companies have tried to replicate this. Most have failed.

We welcome innovation because it makes us better, but it’s important to be honest about how hard this problem is.

What This Means for the Market

My belief is that the most valuable and high-stakes legal work requires authority. That is the AI we are building at Thomson Reuters—CoCounsel is now trusted by one million professionals in over 107 countries and territories for work where errors aren’t an option. We will continue to adopt the best tools and techniques, including innovations coming from foundation model providers like Anthropic, to deliver on that vision.

At the same time, companies like Harvey and Legora face an increasingly difficult strategic position. They now sit between incumbents with authoritative infrastructure, foundation model companies with enormous scale advantages, and Anthropic’s enterprise plugin ecosystem that can handle operational legal work. That is not an easy place to compete long term.

Anthropic’s move into legal plugins doesn’t threaten what we do—it clarifies it. The market is bifurcating into operational AI and authoritative AI. Both are valuable. But they’re not the same thing.

That Wikipedia screenshot doesn’t prove AI can’t do legal work. It proves that legal AI requires more than a smart model—even one equipped with sophisticated plugins.

It requires authoritative content, deep domain expertise, infrastructure, and governance systems designed for professional risk. This week’s announcements from both Anthropic and Thomson Reuters prove this divide is real and growing.

The companies that understand this will win. The rest will eventually learn the hard way.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Author
Nick Lichtenberg
By Nick LichtenbergBusiness Editor
LinkedIn icon

Nick Lichtenberg is business editor and was formerly Fortune's executive editor of global news.

See full bioRight Arrow Button Icon

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

altman
Commentarydisruption
Sam Altman, Jensen Huang and the other AI kingpins only have themselves to blame for the scare rippling through the economy right now
By Nick LichtenbergMarch 4, 2026
7 minutes ago
wong
CommentaryLegal
Legal AI is splitting in two—and most people miss the difference
By Nick LichtenbergMarch 4, 2026
1 hour ago
cuban
CommentaryDrugs
Trump promised lower drug prices. Here’s how Congress virtually guaranteed the opposite
By Tony LoSassoMarch 4, 2026
2 hours ago
gen z
Commentarytourism
Millennials invented the experience economy and Gen Z is reinventing travel itself
By Nick LichtenbergMarch 4, 2026
2 hours ago
wolfgang
CommentaryLeadership
Europe doesn’t lack tech talent. Its leaders lack execution
By Wolfgang OelsMarch 3, 2026
23 hours ago
zuck
Commentarycyber
Boards aren’t ready for the AI age: What happens when your CEO gets deepfaked?
By James RichardsonMarch 3, 2026
1 day ago

Most Popular

placeholder alt text
Economy
Interest on the $38.8 trillion national debt has tripled since 2020, and it already costs taxpayers more than defense and Medicaid
By Nick LichtenbergMarch 2, 2026
2 days ago
placeholder alt text
Middle East
Iran’s Islamic Revolutionary Guard controls a sprawling business empire that dominates the economy
By Jason MaMarch 2, 2026
2 days ago
placeholder alt text
Personal Finance
Current price of silver as of Tuesday, March 3, 2026
By Joseph HostetlerMarch 3, 2026
20 hours ago
placeholder alt text
Personal Finance
Current price of gold as of March 2, 2026
By Danny BakstMarch 2, 2026
2 days ago
placeholder alt text
Middle East
U.S. military gives Iran a taste of its own medicine with cheap copycat Shahed drones, while concern shifts to munitions supply in extended conflict
By Jason MaMarch 1, 2026
3 days ago
placeholder alt text
AI
American schools weren’t broken until Silicon Valley used a lie to convince them they were—now reading and math scores are plummeting
By Sasha RogelbergMarch 1, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.